Opening Bell: 9.14.18

Flo hits; Manafort deals; Bezos teases; Dispensary thieves foiled by bong-wielding clerk; and more!
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By VIIRS image captured by the National Oceanic and Atmospheric Administration's Suomi NPP satellite (NOAA View Global Data Explorer) [Public domain], via Wikimedia Commons

By VIIRS image captured by the National Oceanic and Atmospheric Administration's Suomi NPP satellite (NOAA View Global Data Explorer) [Public domain], via Wikimedia Commons

Florence Makes Landfall, Unleashing Powerful Wrath on Carolinas [Bloomberg]
The Category 1 storm carried maximum sustained winds of 90 miles (145 kilometers) an hour, menacing the coast with life-threatening storm surges and heavy rains. Landfall occurred at 7:15 a.m., the National Hurricane Center said in a bulletin at 7:35 a.m. local time.
About 150 people were awaiting rescue from rising waters, the City of New Bern, North Carolina, said on its Twitter account, advising those affected to move to an attic or second story for safety. About 239,000 Duke Energy Corp. customers in North and South Carolina have been affected by power outages, according to the company’s website, while more than 300,000 have lost power in North Carolina, the state’s Emergency Management department tweeted. As many as 3 million may eventually be in the dark for days or even weeks.

China to ask Wall Street for ideas on improving U.S. ties [Reuters]
The Chinese government sent invitations for the hastily-convened meeting a few weeks ago as trade tensions between the world’s two largest economies appeared to be headed for a full-blown trade war.
Top financial firms in both countries are sending representatives to the meeting, although heavyweight invitees such as Blackstone’s Stephen Schwarzman were unable to rearrange their schedules to attend the meeting, a source said.
The meeting will be chaired by Zhou Xiaochuan, former governor of the People’s Bank of China, and John Thornton, ex-president of Goldman Sachs.

Paul Manafort and special counsel reach tentative plea deal: Sources [ABCNews]
Former Trump campaign chairman Paul Manafort has tentatively agreed to a plea deal with special counsel Robert Mueller that will head off his upcoming trial, sources familiar with the negotiations tell ABC News.
The deal is expected to be announced in court Friday, but it remains unclear whether Manafort has agreed to cooperate with prosecutors or is simply conceding to a guilty plea, which would allow him to avoid the stress and expense of trial, according to three sources with knowledge of the discussions.

Gary Cohn Backed Goldman Sachs's 1MDB Dealings, Book Says [Bloomberg]
Cohn supported the "potentially lucrative line of business" that some of its top Asia-based bankers were developing in Malaysia, said the authors of "Billion Dollar Whale," to be released by Hachette Books on Tuesday. Those executives included Tim Leissner, the former Goldman banker who led the 1MDB bond sales, and Andrea Vella, who headed Goldman’s debt and structured finance business in Asia.
"The backing of a domineering and powerful personality like Cohn afforded significant cover to those involved in the 1MDB business and drowned out the voices of those who were uncomfortable with the plans to raise billions of dollars for the fund," the authors -- Wall Street Journal reporters Tom Wright and Bradley Hope -- wrote. Cohn left Goldman in 2016 and later became White House economic adviser, a role he relinquished earlier this year.

Jeff Bezos says Amazon will announce HQ2 decision before the end of the year [CNBC]
Amazon CEO Jeff Bezos said the decision for the winner of the company's second headquarters will not be announced Thursday during his interview at the Economic Club Washington D.C.
"The answer is very simple," Bezos told David Rubenstein, the president of the Economic Club of Washington D.C. and the cofounder of the Carlyle Group. "We will answer the decision before the end of the year."
Bezos reiterated that his team at Amazon is "working hard" to choose the final winner of HQ2, but declined to share further information on the process. The company previously announced 20 finalists, including Washington D.C., northern Virginia, and Montgomery Country, Maryland.

Pot Shop Employee Fights Off Attackers With Trusty Glass Bong [HuffPo]
The attempted robbery occurred last Thursday afternoon at the Recreational Cannabis Farmers Market in Shannonville, Ontario, when three men entered the store with their faces covered.
The robbers sprayed bear mace on two store employees, a man and a woman, but the male clerk didn’t let that stop him from protecting the merchandise.
Surveillance video shows the clerk grabbing a bong and using it as a weapon.

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Opening Bell: 6.23.17

Even in the clink, Bernie Madoff is still helping his clients; Burton Malkiel is taking a not-so-random-walk; politics is affecting our porn habits; and more.

Opening Bell: 04.16.12

Downgrades Loom For European Banks (WSJ) Under pressure from banks, Moody's Investors Service said Friday that it is delaying until early May its highly anticipated decision on whether to downgrade the credit ratings of 114 banks in 16 European countries. Moody's announced the review in February, saying it was needed in light of the banks' weak conditions and the tough environment in which they're operating. It had planned to start unveiling the decisions this week. Obama Bid to End Too-Big-to Fail Undercut as Banks Grow (Bloomberg) Two years after President Barack Obama vowed to eliminate the danger of financial institutions becoming “too big to fail,” the nation’s largest banks are bigger than they were before the credit crisis. Five banks-- JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs-- held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to the Federal Reserve. Five years earlier, before the financial crisis, the largest banks’ assets amounted to 43 percent of U.S. output. The Big Five today are about twice as large as they were a decade ago relative to the economy, sparking concern that trouble at a major bank would rock the financial system and force the government to step in as it did during the 2008 crunch. “Market participants believe that nothing has changed, that too-big-to-fail is fully intact,” said Gary Stern, former president of the Federal Reserve Bank of Minneapolis. Carlyle Takes Cautious Approach in IPO Price (WSJ) Carlyle Group plans to sell 30.5 million shares priced between $23 and $25 in its initial public offering, which could come before the end of the month, according to people familiar with the matter. Those shares would represent about 10% of the Washington, D.C., private-equity firm, in a deal that would value Carlyle at more than $7 billion, these people said. That value is toward the lower end of what earlier had been expected...Carlyle is putting less emphasis on pricing shares high at the IPO, instead hoping they rise in value once they are traded, according to people familiar with the matter. Bond Recipes Use Fresh Ingredients (WSJ) With risk-taking in vogue again, Wall Street is betting on the revival of a market for bonds made out of everything from "The English Patient" to fried chicken. The amount of so-called esoteric bonds backed by unusual assets has nearly doubled this year compared with the same period a year ago, according to Credit Suisse. Thus far this year, there have been $5.6 billion in deals done, more than twice the $2 billion in the same period last year. Over the past several months investors have bought bonds backed by revenue from Domino's Pizza DPZ +0.34% franchises, Miramax films, patents for drugs like Clarinex and Flumist and loans to buyers of Wyndham vacation time-shares. The deals show investors are becoming comfortable again with Wall Street's engineering skills, after many were hammered during the financial crisis by losses on bonds backed by subprime home loans and complex debt pools known as collateralized-debt obligations. The esoteric sales also mark a rare growth area for giant banks that have been hit hard by a slowdown in deal-making and trading. Four-year-old Heidi Hankins joins Mensa with 159 IQ (BBC) A four-year-old girl from Hampshire has been accepted into Mensa with an IQ just one point below Albert Einstein and Stephen Hawking. Heidi Hankins from Winchester has a 159 IQ. She taught herself to read and was able to count to 40 at two years old. British Mensa chief executive John Stevenage said Heidi's parents "correctly identified that she shows great potential." According to Mensa, the average adult IQ score is 100. Geithner Rebuts Romney on Women and Jobs (WSJ) As the fight for women voters intensified in recent days, Mr. Romney took a swipe at Mr. Obama by saying women had borne the vast majority of job losses over the past three years. Labor Department data show women do account for 92.3% of the workers who have lost jobs since Mr. Obama took office in January 2009. But men suffered deeper job losses than women in the year before Mr. Obama's inauguration and men have gained more jobs than women since the recovery began in 2009. "It's a ridiculous way to look at the problem," Mr. Geithner said of Mr. Romney's criticism. Mr. Geithner on Sunday also defended the Obama administration's efforts to reduce the federal budget deficit, and said there was "no risk" that the U.S. would go through a debt crisis in the next two years like the one Greece is experiencing. But he had a warning for Congress, when asked on NBC's "Meet the Press" about whether Congress would act to raise the government's debt ceiling again at the end of this year. "This is Congress's obligation to do as they have always done in the past," he said. "It would be good for the country this time if they did it with less drama." Barclays' Tax Deal Faces US Scrutiny (FT) Barclays’ controversial tax planning business will come under fresh scrutiny in a U.S. court this week over whether a transaction designed by the bank cost the U.S. government more than $1 billion in lost tax receipts. The U.S. Internal Revenue Service claims that complex, cross-border deals Barclays structured for several mid-tier banks in the last decade were an abusive tax shelter that exploited loopholes between U.S. and U.K. tax laws. Prime Brokerages Consolidate After 'Big Bang' (Reuters) Hedge funds are cutting back on the brokerage accounts they hold as the prime brokerage industry begins to consolidate more than four years after the Lehman Brothers bankruptcy blew the sector wide open. Goldman Sachs Said to Raise $2.5 Billion in ICBC Sale (Bloomberg) The Wall Street firm is selling $2.5 billion of shares at HK$5.05 each, according to two people with knowledge of the matter. It sold 3.55 billion shares, or 4 percent of ICBC’s Hong Kong-traded shares, to Temasek, the Singapore state-owned investment group said. Temasek, which is increasing stakes in China’s biggest banks, paid $2.3 billion for the stock, based on the per-share price and stake size. 'Hug Me' Coke Machine Asks for Hugs, Delivers Free Coke (MFDC) Coca-Cola's global marketing campaign dubbed "Open Happiness" takes on a new twist with a Coke vending machine that asks passers by to give it a hug. The big red and white machine, located at the National University in Singapore, has "Hug Me" written across its front side. And people are actually hugging it...and given free Cokes.

Opening Bell: 12.04.12

Banks Rediscover Money Management Again As Trading Declines (Bloomberg) Global banks, forced by regulators to reduce their dependence on profits from high-risk trading, have rediscovered the appeal of the mundane business of managing money for clients. Deutsche Bank is now counting on the fund unit it failed to sell to help boost return on equity, a measure of profitability. UBS is paring investment banking as it focuses on overseeing assets for wealthy clients. Goldman Sachs, JPMorgan Chase and Wells Fargo, three of the five biggest U.S. banks, are considering expanding asset- management divisions as they seek to grab market share from fund companies such as Fidelity Investments. “Asset management is a terrific business,” said Ralph Schlosstein, chief executive officer of Evercore Partners Inc., a New York-based boutique investment bank that last month agreed to buy wealth manager Mt. Eden Investment Advisors LLC. “Asset managers earn fees consistently without risking capital. Compare that to other businesses in the financial services.” Hedge Funds Win as Europe Will Pay More for Greek Bonds (Bloomberg) Hedge funds drove up prices for Greek sovereign debt last week after determining that European finance ministers would back off a pledge to pay no more than about 28 percent of face value to retire the nation’s bonds. Money managers correctly wagered that not enough bondholders would participate at that level to get the deal done. That would put at risk bailout funds that Greece needs to stave off economic collapse. Transactions involving Greek bonds “increased by the day” after it became clear that the buyback was going to happen, with hedge funds accounting for most of the purchases, said Zoeb Sachee, the London-based head of European government bond trading at Citigroup Inc. “If all goes according to plan, everybody wins,” Sachee said. “Hedge funds must have bought lower than here. If it isn’t successful, Greece risks default and everybody loses.” GE's Swiss lending unit for sale, UBS to bid (Reuters) General Electric Co wants to sell its Swiss consumer lending business, two sources familiar with the matter said, with UBS one of the parties interested in a deal that could be worth up to 1.5 billion Swiss francs ($1.62 billion). The sources told Reuters that UBS was one of at least two parties who plan to submit bids in an auction process. "GE wants to finalize the sale of GE Money Bank by the end of the first quarter," said one of the sources. Brian Moynihan: 'Fiscal Cliff' Repercussions Could Stretch in 2014 (CNBC) "I'm more concerned about business behavior slowing down than I am about consumer behavior," Moynihan told "Squawk Box." "I think we're in danger if this thing strings out into 2013 that you could start to have problems of what 2014 would look like." Icahn Fails In Oshkosh Tender Offer (WSJ) The activist investor was tendered only a meek 22% of shares in an offer he used essentially as a proxy for whether shareholders would support his board nominees. Icahn, who had pledged to drop the offer and his proxy fight if he didn’t receive at least 25% of shares tendered, says he is indeed dropping the tender offer. Ex-baseball star Lenny Dykstra sentenced in bankruptcy fraud case (Reuters) Lenny Dykstra, the 1980s World Series hero who pleaded guilty earlier this year to bankruptcy fraud, was sentenced on Monday to six months in federal prison and ordered to perform 500 hours of community service. The 49-year-old former ballplayer - who is already serving time in state prison for grand theft auto, lewd conduct and assault with a deadly weapon - was also ordered to pay $200,000 in restitution. In the federal case, Dykstra pleaded guilty in July to bankruptcy fraud and other charges. According to the written plea agreement, he admitted defrauding his creditors by declaring bankruptcy in 2009, then stealing or destroying furnishings, baseball memorabilia and other property from his $18.5 million mansion. Teacher disciplined for receiving foot massages from students (SLT) A Taylorsville Elementary School teacher has returned to his third-grade classroom after being disciplined for violating professional standards after students reported they scratched his back, rubbed his feet and had other inappropriate contact while at school. Granite School District officials found no criminal conduct by elementary teacher Bryan Watts, 53, who has worked at the school since 2004, but the district claims to have taken "appropriate disciplinary action" following complaints about Watts...Granite District police Detective Randall Porter started an investigation into Watts’ conduct Oct. 9 after a mother expressed concern to the district after her daughter reported odd classroom behavior by Watts. "She complained that her daughter [name redacted] told her that Watts asks students to rub his feet and back during ‘movie time,’ that Watts told the class that they should not tell their parents about activities that happen in the classroom, and that Watts scared a student by hitting a hammer on the student’s desk," Porter wrote in his 19-page report...officials also said there were student statements about odd activities, including playing dodgeball in Watts’ classroom. Knight Capital May Go It Alone (NYP) Knight Capital’s board emerged from another meeting yesterday to review dueling takeover offers without making a decision. Both Getco and Virtu Financial have made bids for the Jersey City, NJ-based Knight, which had to be bailed out several months ago after a $460 million trading glitch nearly tanked the firm. “[Knight] can still decide to remain independent. That’s a real possibility,” said one source familiar with the bidding process. Top US Firms Are Cash-Rich Abroad, Cash-Poor At Home (WSJ) With billions of dollars overseas that may never come back, the Securities and Exchange Commission is concerned that companies haven't been presenting investors with an honest appraisal of their liquidity. As a result, regulators are pressing companies to more clearly lay out how much of their cash is in the U.S. and how much is overseas and potentially encumbered by U.S. taxes. UBS Near Libor Deal (Reuters) UBS is nearing a deal to settle claims some of its staff manipulated interest rates, and could reach agreement with US and British authorities by the end of the year, a source said yesterday. Britain’s Barclays was fined $453 million in June for manipulating Libor benchmark interest rates, and remains the only bank to settle in the investigation, which led to the resignation of the bank’s chairman and CEO. Calpers Crusader Takes Aim At Fees (WSJ) Mr. Desrochers, a 65-year-old native of Canada who last year became head of private-equity investing for the California Public Employees' Retirement System, has told buyout funds to reduce fees if they want cash from the $241 billion pension goliath, one of the nation's largest private-equity investors. He has pushed for Calpers to pay management fees below the industry's standard of 1% or more and asked for performance fees below the usual 15% to 20% of gains, according to people who have dealt with him. Mike Tyson: Brad Pitt Had Sex With My Wife (NYP) Mike Tyson claims that he caught Pitt having sex with his ex-wife, Robin Givens, while they were in the middle of their divorce in the late eighties. Tyson, who was shortly married to Givens from 1988 to 1989, said he and the actress were still sleeping with each other during their separation. "I was getting a divorce, but... every day, before I would go to my lawyer's office to say 'she's a pig and stealing,' I would go to her house to have sex with her," Tyson said on the Yahoo! Sports show “In Depth with Graham Bensinger.” "This particular day, someone beat me to the punch. And I guess Brad got there earlier than I did." How did the heavyweight boxer react? "I was mad as hell...You should have saw his face when he saw me," Tyson said.

Opening Bell: 08.20.12

Diamond Censured Over Evidence in Barclays Libor Probe (Bloomberg) Barclays ex-Chief Executive Officer Robert Diamond was criticized for giving “unforthcoming and highly selective” evidence by a U.K. parliamentary report that faulted the bank for letting traders rig interest rates. The “candor and frankness” of Diamond’s testimony to lawmakers on July 4 “fell well short of the standard that Parliament expects,” the House of Commons Treasury Committee said in a 122-page report today following its inquiry into the bank’s attempts to manipulate the London interbank offered rate. “The Barclays board has presided over a deeply flawed culture,” the panel of British lawmakers said. “Senior management should have known earlier and acted earlier.” Bob Diamond Hits Bank In Rate-Rigging Row (Telegraph) In a statement Mr Diamond hit back at the report. "I am disappointed by, and strongly disagree with, several statements by the Treasury Select Committee,” Diamond said. Deutsche Bank’s Business With Sanctioned Nations Under Scrutiny (NYT) Federal and state prosecutors are investigating Deutsche Bank and several other global banks over accusations that they funneled billions of dollars through their American branches for Iran, Sudan and other sanctioned nations, according to law enforcement officials with knowledge of the cases. JPMorgan Picks Leader For 'Whale' Probe (WSJ) JPMorgan directors have named Lee Raymond chairman of a board committee investigating the bank's multibillion-dollar trading blunder, said people close to the probe. Some Groupon Investors Give Up (WSJ) Some of the early backers of Groupon, including Silicon Valley veteran Marc Andreessen, are heading for the exits, joining investors who have lost faith in companies that had been expected to drive a new Internet boom. At least four Groupon investors who held stock in the daily-deals company before it went public have sold or significantly pared back their holdings in recent months. Since its initial public offering in November, Groupon has shed more than three-quarters of its stock-market value, or about $10 billion...Mr. Andreessen, who rode the 1990s dot-com frenzy to riches at Netscape Communications Corp., was among the investors who helped fuel Groupon's rapid ascent. His firm, Andreessen Horowitz, was responsible for $40 million of the $950 million investors put into Groupon just months before the company's IPO. Andreessen Horowitz sold its 5.1 million Groupon shares shortly after restrictions on selling the stock expired June 1, according to people with knowledge of the transaction. Facebook Investors Brace For More Shares Coming To Market (Bloomberg) While Facebook Chief Executive Officer Mark Zuckerberg operates the world’s largest social-networking service, he’s facing investor concerns about how it can generate more revenue from its growing user base. That, plus the end of the first lock-up, drove the shares to half the offering price of $38, wiping out almost $46 billion in market value. Queen's corgis 'attack' Princess Beatrice's terrier Max (Telegraph) They may be among the Queen's favourite subjects but her corgis are in the doghouse after getting into a fight with one of Princess Beatrice's pets. Max, an 11–year–old Norfolk terrier, is said to have been badly injured after a "nasty" encounter at Balmoral castle last week. The Princess's pet nearly lost an ear and suffered several bloody bite injuries that had to be treated by a vet, in the latest in a series of scraps between royal dogs..."The Queen's dog boy was taking the corgis for a walk and they were joined by the Norfolk terriers, which came with Prince Andrew," one insider told a Sunday newspaper. "They were being taken along the long corridor leading to the Tower Door before being let into the grounds for a walk, and they all became overexcited. They began fighting among themselves and unfortunately the dog boy lost control. "The next thing we knew there were horrific yelps and screams...there was blood everywhere." EU Leaders Plan Shuttle Talks To Bolster Greece, Sovereign Bonds (Bloomberg) The sovereign-debt crisis mustn’t become a “bottomless pit” for Germany, even though Europe’s biggest economy would pay the highest price in a breakup of the euro region, German Finance Minister Wolfgang Schaeuble said on Aug. 18 during his ministry’s open day in Berlin. “There are limits,” he said, as he ruled out another aid program for Greece. Hedge 'A-Listers' Include Ackman, Loeb, Chanos (NYP) Influential adviser Cliffwater LLC — which monitors some 1,500 hedge funds and ranks them with an A, B or C grade — keeps a closely guarded list of 90 or so top-rated funds...Cliffwater advises large pension funds in New Jersey, Wisconsin and Massachusetts, among others, and has become one of the industry’s hottest gatekeepers as more big institutions invest directly in hedge funds rather than through funds of funds...An August copy of Cliffwater’s “500 top-rated A or B” funds shows that the company gives high marks to activist funds such as Ackman’s Pershing Square and also to tail risk funds, which aim to protect against disasters. Tucked inside the protected internal document, which compares five-year historical returns to risk, is Cliffwater’s “Select List,” which appears to be the 95 funds deemed worthy of A ratings. Along with Ackman, Dan Loeb of Third Point, the hedgie who recently rattled Yahoo!, famed short-seller Jim Chanos of Kynikos Associates and gold hound James Melcher of Balestra Capital, made the short list as well. Spitzer Defends Wall Street Legacy (FT) Last week it emerged that Goldman Sachs had brought the curtains down on its Hudson Street platform, one of the most high-profile independent research projects started by an investment bank involved in the settlement. Other settlement banks, such as UBS and Bank of America Merrill Lynch, are said to have closed or scaled down their own independent analysis projects. Mr. Spitzer was quick to defend the legacy of the global settlement in an interview with the Financial Times. “I think we accomplished something,” Mr. Spitzer said. “There are a lot of independent research firms out there, some doing well and others not. Goldman has other business models and other priorities.” Shia LaBeouf To Have Sex "For Real" While Filming Scenes For Lars Von Trier's "Nymphomaniac" (Complex) "It is what you think it is. There's a disclaimer at the top of the script that basically says, we're doing [the sex] for real. And anything that is 'illegal' will be shot in blurred images. But other than that, everything is happening," LaBeouf said during an interview.

Opening Bell: 05.25.12

J.P. Morgan Unit Made Risky Bets on Firms (WSJ) The JPMorgan unit whose wrong-way bets on corporate credit cost the bank more than $2 billion includes a group that has invested in financially challenged companies, including LightSquared Inc., the wireless broadband provider that this month filed for Chapter 11 bankruptcy protection...The Special Investments Group last year took a $150 million stake in closely held LightSquared, in a deal that J.P. Morgan lost money on, according to a person familiar with the bank. Both Campaigns Seize on Romney’s Years at Bain (NYT) ...the Romney campaign is actively recruiting testimonials from workers who have had positive experiences with Bain. It is getting ready to release advertising highlighting Bain’s marquee success stories, like the turnaround of Staples. It is considering seeking out middle-class surrogates — a fireman or members of a teachers union, for instance — who would be willing to talk about how Bain managed and increased the size of their pension funds, a lesser-known aspect of private equity...Mr. Romney’s advisers are betting that if they stay out of the nuances of private equity and tell a story about turning around failing companies, they can transform the Bain attacks into a narrative that underscores Mr. Romney’s image as a skilled executive who can steer a troubled economy back to prosperity. ECB Official: On Greece, ‘We Are Working on Plan A’ (CNBC) "It's our strong preference that Greece stays in the euro zone...We are working on plan A," Joerg Asmussen said in the interview yesterday. "I always work on plan A. I am not speculating, I am working to make plan A successful," he added. What Would A Greek Exit Mean For The US Economy? (Reuters) usiness investment would stall, banks would pull back on credit, and lost wealth as equity prices fall would cause consumers to slow their spending. Commodity prices would plunge, helping importers but hurting growth in export economies. Merkel May Be Persuaded On Euro Debt-Sharing Compromise (Bloomberg) Chancellor Angela Merkel left the door open to a compromise on debt sharing in the euro area as Italian Prime Minister Mario Monti said he can help bring Germany round to acting in Europe’s “common good.” Short Sellers Find Friends In Banks (WSJ) As traders at Morgan Stanley were frantically trying to shore up Facebook Inc.'s FB share price following the company's initial public offering, other managers on the deal were helping short sellers bet that the newly minted stock would fall. Trading desks at Goldman Sachs Group and J.P. Morgan Chase, two of the firms that helped Morgan Stanley underwrite the IPO, were among those lending out Facebook shares that hedge funds needed for short sales, according to people familiar with the matter. While it isn't uncommon for Wall Street firms to make shares available for shorting on IPOs they manage, Morgan Stanley, the lead underwriter, didn't lend shares, according to people familiar with the matter. Escaped monkey holds up flight at JFK for hours (NYP) Monkey business held up a Beijing-bound flight at Kennedy Airport nearly four hours yesterday. A monkey escaped its crate in the cargo hold of an Air China Boeing 747 scheduled to leave Terminal 1 at 4:50 p.m., said Port Authority police. Port Authority emergency services officers and an airport worker caught the monkey and handed it over to the airline. The animal never got out of the jet’s cargo hold. The foot-tall monkey was one of about 50 to 60 being shipped to China for medical research, said police sources. “He was a slippery little beast,” one source said. Bankia Shares Suspended Ahead of Board Meeting (WSJ) EFE news agency reported Thursday that the lender will ask the government for more than €15 billion ($18.80 billion). The bank said it requested the suspension ahead of the meeting, at which it will also approve its 2011 earnings report. The board meeting will begin at 2:30 p.m. GMT. Moody's Downgrades Major Nordic Banks (WSJ) Moody's said the funding and margin issues left the banks susceptible to unexpected losses from which it would be a challenge for them to rebuild capital. It also highlighted risks to asset quality, with the Swedish economy exposed to weakness in Europe and the banks' variable-rate mortgage books vulnerable to interest rate changes. USDA Is a Tough Collector When Mortgages Go Bad (WSJ) Unlike private firms, the USDA doesn't need permission from a court to start collecting on unpaid debts. It can in some cases seize government benefits and tax refunds before a foreclosure is completed. After foreclosure, the USDA can go after unpaid balances, even in states that limit such actions by private lenders. Nasdaq CEO went ahead with Facebook IPO despite signs new software had bugs (NYP) During a conference call on Monday evening, Nasdaq officials said that they were unaware of any problems with the system. However, sources said that there may have been signs that the system wasn’t glitch-free even at the 11th hour and that Nasdaq opted to roll the dice. “They may have thought they did not have any material issues with the systems,” said one exchange platform official. Lacrosse Party-Boy Image Worries Coaches Who See Slower Growth (Bloomberg) “It’s really important that the lacrosse world grows up a little bit,” Danowski said from his office in Durham, North Carolina. “We are getting more TV exposure; more people are able to make a living through lacrosse. If we want to be accepted in the mainstream, then it’s time for us to grow up.”

Opening Bell: 03.13.13

Ackman Applauds Call For Herbalife Investigation (AP) The National Consumers League said that it wants the FTC to investigate the claims against Herbalife as well as the vitamin and supplement products company's responses. Ackman alleged in December that Herbalife was a pyramid scheme and made a bet the stock would fall, arguing that the company makes most of its money by recruiting new salespeople rather than on the products they sell. Herbalife disputes that. In a statement late Tuesday, Pershing Square Capital Management's Ackman said that he was pleased that the NCL was requesting an FTC investigation and believes it will show that the company is a pyramid scheme. On Wednesday, Herbalife said in a statement that "We regret that the National Consumers League has permitted itself to be the mechanism by which Pershing Square continues its attack on Herbalife." Troika, Cyprus In Talks To Shrink Bailout Package (WSJ) Officials from the troika of lenders—the European Commission, the European Central Bank and the International Monetary Fund—are working with the Cypriot government to bring the headline figure for the bailout package to about €10 billion ($13.03 billion), two officials said. The aid package had been earlier expected to be as much as €17 billion—with just shy €10 billion of that going for bank recapitalizations. Big Sugar Set For Sweet Bailout (WSJ) The U.S. Department of Agriculture is considering buying 400,000 tons of sugar—enough for 142 billion Hershey's Kisses—to stave off a wave of defaults by sugar processors that borrowed $862 million under a government price-support program. The action aims to prop up tumbling U.S. sugar prices, which have fallen 18% since the USDA made the nine-month operations-financing loans beginning in October. The purchases could leave the price-support program with an $80 million loss, its biggest in 13 years, said Barbara Fecso, an economist at the USDA, in an interview. U.S. Tax Cheats Picked Off After Adviser Mails It In (Bloomberg) Everybody knows the danger of sending things inadvertently in an e-mail. Beda Singenberger’s case shows you also have to be pretty careful when you mail things the old-fashioned way. Over an 11-year period, federal prosecutors charge, Swiss financial adviser Singenberger helped 60 people in the U.S. hide $184 million in secret offshore accounts bearing colorful names like Real Cool Investments Ltd. and Wanderlust Foundation. Then, according to a prosecutor, Singenberger inadvertently mailed a list of his U.S. clients, including their names and incriminating details, which somehow wound up in the hands of federal authorities. Now, U.S. authorities appear to be picking off the clients on that list one by one. Singenberger’s goof has already ensnared Jacques Wajsfelner, an 83-year-old exile from Nazi Germany, and Michael Canale, a retired U.S. Army surgeon, court records show. Another customer, cancer researcher Michael Reiss, pleaded guilty, though his court records don’t mention the list. White Pressed On Past Representing Banks (WSJ) Since 2002, President Barack Obama's pick to become chairman of the Securities and Exchange Commission has worked for the law firm Debevoise & Plimpton LLC, where she often represented large corporations and banks. Members of the Senate Banking Committee, often from the president's own party, pressed her to guarantee that her law-firm work wouldn't stop her from taking on Wall Street's wrongdoers. "What have you done [in] the last decade that ordinary investors can look at and be assured that you will advocate for them?" Sen. Sherrod Brown (D., Ohio) asked Ms. White. Wearing a bright red jacket, her hands neatly folded on the table before her, Ms. White said her work at Debevoise "hasn't changed me as a person." Killer Ukrainian dolphins on the loose (JustinGregg) After rebooting the Soviet Union’s marine mammal program just last year with the goal of teaching dolphins to find underwater mines and kill enemy divers, three of the Ukrainian military’s new recruits have gone AWOL. Apparently they swam away from their trainers this morning ostensibly in search of a “mate” out in open waters. It might not be such a big deal except that these dolphins have been trained to “attack enemy combat swimmers using special knives or pistols fixed to their heads.” Dimon’s Extra $1.4 Million Payout Hangs on Fed Decision (Bloomberg) That’s how much extra income Dimon could get from his stake of about 6 million shares if his New York-based bank raises its payout as much as analysts predict. The sum dwarfs the combined $73,300 of new annual dividends at stake for his CEO peers at Bank of America Corp., Goldman Sachs Group Inc. and Wells Fargo & Co., based on forecasts compiled by Bloomberg. Bankers will find out whether they get any boost tomorrow when the Fed announces which capital plans at the 18 largest U.S. lenders won approval. Regulators have pressed firms since the 2008 credit crisis to give executives more stock and less cash to align their interests with those of shareholders. CEOs are poised to get a windfall if payouts increase and shares rise -- or to suffer with their investors if results sputter. BofA Ordered to Pay Ex-Merrill Banker Jailed in Brazil (Bloomberg) Sao Paulo’s 26th labor court said it was “incontrovertible” that the imprisonment was because of his position as a junior financial consultant at Merrill Lynch, now a division of Charlotte, North Carolina-based Bank of America, according to a document published in the nation’s official Gazette earlier this month. Caiado wasn’t convicted of any wrongdoing. Caiado, 42, was jailed in June 2006 in a Curitiba federal prison over allegations he helped Merrill’s clients make illegal overseas money transfers. His arrest was part of an investigation that resulted in indictments of 18 bankers at Credit Suisse AG and UBS AG in Brazil. Merrill fired Caiado nine months later, saying the dismissal was part of a restructuring. Carlyle Group Lowers Velvet Rope (WSJ) In the latest effort by private-equity firms to broaden their customer base, Carlyle Group is letting some people invest in its buyout funds with as little as $50,000. The move comes as other large firms—known for offering exclusivity to big-money clients—have broadened their investment offerings in search of fresh sources of funds. KKR, for example, recently began offering mutual funds investing in bonds, with minimum investments set at $2,500. Blackstone Group launched a fund last year that for the first time lets affluent individuals invest in hedge funds and has told regulators it plans to offer another fund, though it hasn't disclosed many details about the forthcoming offering. Greenland Votes for Tougher Rules for Foreign Investors (WSJ) Voters in Greenland have elected a new ruling party that has pledged to toughen up on foreign investors looking to take advantage of the nation's wealth of natural resources. The Social Democratic Siumut party collected 43% of the votes in an election held Tuesday, enabling the party to leapfrog the ruling Inuit Ataqatigiit, which over the past four years has worked to open up the secluded country to mining companies and others capable of advancing industry. Greenland is believed to have a vast supply of untapped rare-earth minerals, oil, gas and other resources. Blankfein On Trader Talent Hunt At Morgan Stanley (NYP) The Goldman Sachs CEO is taking dead aim at Morgan Stanley’s most prized assets — its best and brightest employees — after his rival decided to defer pay for senior bankers. Blankfein, as a big game hunter, recently landed 13-year Morgan Stanley veteran Kate Richdale, head of its Asia Pacific investment banking business. The CEO’s talent hunt is continuing, sources said. Goldman currently is in selective talks with other Morgan Stanley bankers and has also lured a handful of traders from the bank. Golfer Survives Fall Into Course Sinkhole (AP) Mark Mihal was having a good opening day on the links when he noticed an unusual depression on the 14th fairway at Annbriar Golf Club in southern Illinois. Remarking to his friends how awkward it would be to have to hit out of it, he went over for a closer look. One step onto the pocked section and the 43-year-old mortgage broker plunged into a sinkhole. He landed 18 feet down with a painful thud, and his friends managed to hoist him to safety with a rope after about 20 minutes. But Friday's experience gave Mihal quite a fright, particularly after the recent death of a Florida man whose body hasn't been found since a sinkhole swallowed him and his bedroom. "I feel lucky just to come out of it with a shoulder injury, falling that far and not knowing what I was going to hit," Mihal, from the St. Louis suburb of Creve Coeur, told The Associated Press before heading off to learn whether he'll need surgery. "It was absolutely crazy."

Opening Bell: 5.12.16

Failed deals cost banks hundreds of millions; NY regulator asks Goldman for shell company info; Wife battered husband over candy, flowers; and more.